NEW YORK (HedgeWorld.com)–Standard & Poor’s and PlusFunds Inc. expanded their joint offerings with the introduction of nine hedge fund baskets.
The baskets were extracted from the S&P Hedge Fund Index, but because the baskets contain only about five hedge fund strategies, they can’t be considered an index on their own, said Meir Kahtan, a spokesman for PlusFunds. Like the parent index, though, they will be fully investable, priced daily and transparent, all attractive attributes for hedge fund investors.
Using the component baskets, investors will be able to construct their own portfolios with allocations to the various strategies based on their own needs. S&P already offers sub-indexes collecting the individual strategies into three categories, event-driven, directional/tactical and arbitrage.
The nine baskets rely on the following strategies: fixed-income arbitrage; convertible arbitrage, equity market neutral; macro; managed futures; long/short equity; special situations; distressed; and merger arbitrage.
S&P already had unveiled a managed futures index earlier in the year and later brought in futures broker Refco Group Ltd. LLC as a partner in introducing futures index-linked products Previous HedgeWorld Story. Last year, S&P introduced a futures indicator, the S&P Diversified Trends Indicator, which seeks to mimic the basic trend following strategies of a hedge fund manager Previous HedgeWorld Story.